First M-Akiba bond sells out two weeks after launch

April 5, 2017

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According to treasury officials, 5,000 people bought the government paper for as little as Sh3,000, causing the mobile system to freeze during the initial days/FILE

By KEN MACHARIA, NAIROBI, Kenya, Apr 5 – The inaugural mobile infrastructure bond has been closed after the entire Sh150 million on offer was taken by investors 13 days after the Treasury bond was issued.

However, investors can participate in the secondary from April 11.

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The bond, which was due to officially close on Friday April 7, now sets the tone for a bigger mobile bond to be floated in June worth Sh48.5 billion.

According to treasury officials, 5,000 people bought the government paper for as little as Sh3,000, causing the mobile system to freeze during the initial days.

Investors are allowed to invest a maximum of Sh140,000 per day – the limit set by CBK for mobile money transactions.

Mobile money platforms, MPesa and Airtel Money, are the transaction agents getting a commission of 0.1 percent per actual allocation.

Investors will get a tax-free 10 percent interest for the three-year tenure.